Is that an imputed cap rate that you use as a rule of thumb based on your expected operating expense margin?

I figured now would be a good time to jump in, introduce myself, and ask for advice.

The seller and their agent hopefully did a good job communicating with that tenant to set expectations.

Prices a few years ago were based on expectations of (in addition to interest rates staying low): - Then current operating cost assumptions (like insurance cost expectations being flat)- A seeming disregard for record levels of new inventory / supply hitting the market- Extremely high inbound migration expectations which are likely to not be met, due to both natural disasters and the boomerang effect when people from California or the Northeast move to the American South and hate every minute of the humidity, the large and relentless swarm of insects, and the occasional hurricane. 

Might be time to have a conversation about expectations—or consider other options if he’s not the right fit.

., overall portfolio stability or income growth).Be cautious when setting pay expectations.

It's important to narrow down on the locations and conditions of properties you're looking to buy so you can align your numbers with those expectations.

Metrics like 10-15% of ARV profit, COC, and the 70% rule all serve different purposes, helping you build expectations, safety margins, track leverage, and account for contractor turnaround times.In my opinion rather than overanalyzing numbers upfront, I would focus first on building strong deal flow.

Talking to others also gave me insight into different markets and strategies, which made it easier to figure out where I wanted to focus my efforts.A simple tip I’d give is to start small and grow gradually.

I would say from my experience flipping myself and seeing through my clients' projects that the main things in this market you need to be aware of is that houses are taking time to sell, they're selling for less than expected, and they need to be quality.